Chongqing Iron & Steel losses widen 23pc

PUBLISHED : Friday, 29 August, 2014, 9:39am
UPDATED : Friday, 29 August, 2014, 9:39am

Chongqing Iron & Steel, a medium-sized Chinese steelmaker, reported its net loss in the first half widened 23 per cent year on year to 1.38 billion yuan (HK$1.74 billion) as slower economic growth in China dented demand and steel prices.

Excluding extraordinary losses from asset disposals, the net loss narrowed 15.3 per cent to 945.24 million yuan.

The company said slower economic growth hit revenue, which dropped sharply by 35.18 per cent to 6.03 billion yuan. It also suffered investment losses of 2.07 billion yuan, a whopping 176 per cent jump on the same period last year.

Better cost controls, however, cut operating costs by 32.68 per cent to 6.32 billion yuan.

In a statement, Chongqing Iron said the industry was unlikely to turn the corner in the second half of the year, adding that the group would “conduct cost reduction in a systematic way”.